we don't take phone calls. you are crazy. wishing you a very good night. we will see you tomorrow. lou: good evening, everybody. ukraine's acting government today issued an arrest warrant for the psident they deposed. the pro-russian viktor yanukovych, the opposition government accusg yanukovych of mass crimes against the demonstrators including multiple murders of protesters committed at his order before he was forced to flee kiev. there are reports tonight that yanukovych has fled east into a pro-russia part of the ukraine on the crimean peninsula. russia's foreign minister calling the ouster of yanukovych, an armed mutiny. prime minister dmitry medvedev,

that russia will not work with the interim government. quot if you consider people that prowl kiev with black masks and kalashnikovs, a government, we will have difficulty working with such a government. the ukraine finance ministry sa it needs $35 billion in foreign assistance er the next two years. they call for a donors' conference involving the european union, the united states and imf. the white house ss the united states is ready to provide support. the white house also announced major cuts to the u.s. military. defense secretary chuck hagel from the pentagon, outlining a downsizing that will see our army shrink to pre-1940 levels along with across-the-board cuts to every single branch of the military rick acte and reserves and cutso military pay and entitlements. hagel including the emination of the air force's fleet of a-10 attack aircraft, and it is u-2 spyplanes.

here is secretary hagel pointing to politics. >> reality of reduced resources and a challenging and changing strategic environment requires us to prioritize and make difficult choices. some of those choices we mt make now. for other choices particularly those involving the ultimate size of ourrmed forces, we have built decision points into our budget plan. we will make these decisions when we have more clarity regarding future spending levels. our budget will give us the flexibility to make different cisions based on different ysical outcomes. lo and, the state department today raised serious concerns as it put it over reported arms deal between iraq and iran. iraqi lawmakers telling reuters that president malaki, struck a $220 million secret arms deal with iran because he didn't want to waitn u.s. deliverie all as devastating new poll show

majority of americans souring on the president's image abrd. the new "gallup poll" find 53% of the americans believe president obama is not respected by other world leaders. a 10% increase from a year ago. our first guest tonight says putin will not let ukraine to move to the influence of the west and if necessary he will use force. former arm vice chief of staff, general jack keane, also fox news military analyst. jack, first of all, good to have you here. and this is an administration that has already saido the russians, be careful. my first question to you is, do we have any leverage, any strategic advantage in which the, on which the president might rely for such a threat? >> well, not much, frankly. but what we d have is leverage with this n interim government. and the fact of the matter is, if the e.u. moves quickly to

provide them wh someconomic assistance, the united states gets involved in this, we recognize this interim government, makes all those things tougher for putin to deal with it. the fact of the matter is, we shld publicly dispute the chge this gornment is the result of people with guns. the fa of the matter is, a parliament voted the other government out and voted this interim government in. but we have to move ridly. we can't be bureaucratic about this we can't do half-meures. we have to take strong measures to support them. lou: medvedev, coming out today, making very strong statements. how much time do we have? because he is makaking it clear, each statement seems to be more bellicose than the one that preceded it. >> that sets them up for doing something later down the road. fact of matter is, everybody knows rsia and relationship with ukraine is simply this. they think ukraine is part of russia. that is in putin's mind and the mind of his leaders.

it is hard to imagine that they would let this entire country move toward the west without them doing something to seize a portion of this country, much as they did with georgia when it was moving in the wrong direction. we have to keep that, our eye on the ball that put will use force, if necessary to have his way. lou: is it safe, is it safe, is it reasonable to assume that, if putin would move as he did on georgia, which is, not nearly so significant or important to russia's strategic interests that there is any reason he would not do whatever necessary to retain influence over the ukraine? >> yeah. and he suffered a significant blow here too psychologically. he and yanukovych both miscalculated when they went into the streets with guns to kill the demonstrs and killlled 80 to 100 of them they thought at would break the demonstration. the fact of the matter is, they gotteadfast and resolved. they had more people demonstrated and broke the backs of the government.

they suffered a sigficant loss as a result of that. he will want to regain geopolitically that from that loss. lou: thekrai, europe, dependent upon the natural gas in particular that goes to the ukraine and then is also tranorted by pipeline into, into europe, this is a major weapon for putin to exact the outcome that he wants. give us your judgnt as to what the likely rest will be here? >> i just think there's a chance for this to come out favorable, if the e.u. and thenited states a other countri clearly start to back this country and give it t economic stability that it needs to maintain itself and also be able to take care of its pple. it makes it much more difficult for putin to make a move on a country that wants to stay united and is moving in the right direction. if that doesn't happen, and the country tarts to, starts to

implode because of serious ecomic problems. then we'll see him do something. lou: and turning to the middle east, reports are tonight ase haveejust done, that iran and iraq now he a $200 million arms deal. maliki, apparently notatisfied with the delivery type from the unitedtates. again, this is violation of united nations sanctions, is it not. >> it absolutely is ands outrageous. the united states military defeated insure againsy in -- inurgency in iraq in 2009. we made the decision to pull the troops out. i refer to it bush won the war and this president lost the peace. the great beneficiary of that decision of pulling our troops out and losing influence with the iraqis are who? iranians. they benefited from that. they are now the closest ally to iraqis and it is outoutrageous they're providi arms to them.

the seco part of the problem, lou, is, our arms process, the whole bureaucracy that surrounds in providing arms and equipment to other nations, everyation involv in that complains about the u.s. bureaucra and how slow i is. when you hear maliki talk about, there is some truth to that. lou: that bureaucracy for good or not, is aarently what the administration and secretary hagel are willing to putp with. are they willing to put up with an arms deal with iran and iraq government? >> we should not. is a u.n. violation and should impact our sales what we're going to do with iraq in the future. listen, they have our tanks. they have f-16s. our fighter aircraft, one of our best aircraft in the world. they're getting apache helicopters and get lots of ammunition and other smaller arms. lou: general jack keane, as always, good to have you with us. >> good to talk with you, lou. lou: at bale in the supreme court over how much power the

environmental protection agency actually has to regulate so-called greenhouse gas emissions and it could have a huge impact on the president's global warming policies and his rule by fiat. fox news supreme court corresondent shannon bream tells >> reporter: the supreme court heard arguments today that cou determine just how far federal encies can or can not go when it comes to using regulatory power to accomplish their goals. though today's case centered on epa permitting rules concerning regulating greenhouse gases the broader issues are whether the agency had the write to literay rewrite a federal statute to meet the epa's regulatory aim without ever going to congress. >> executive branch does not have the right to legislate, does not have the right to amend legislatio their job is to enforce. they have exceeded that enforcement authority in this case. >> epa officials argue compliance with the law as written would have led to quote absurd results leaving it no

chce to essentially engage in legislation functions, an argument that didn't seem to sit well to justice antonin scalia who asked quote, are you compelled where there is ambiguity to work with the statute that do not be aproduce absurdity and adopt the legislation that produces absurdity and alter the decisions of statutes? supreme court precedenteighs heavily referring to federal agcies when statutory language is ambiguous. justice kagan why this dispute is not classic case to deference tohe agency. the agency gs to choose how to make tng work as best it can? when the change makes it not work entirely as congress foretold. >> the epa chose to try timely meant the broad protective goals of the statute by bending a little bit on the implementation side. i think tt's a choice that agencies have to be able to make. >> scores ever businesses, states, led by texas and several

gop lawmars are characterizing what happened as an unprecedented power grab and calling on the justices to restore what they argue is the rightful balan between the branches. >> from a constitutional perspective this is a wholly troubling practice that needs to be rectified by the high court. >> as is so often the case here at the court the swing vote could be justice anthony kennedy the last time there was a major challenge to epa regulatory here at the court he sided with the agency. but today at the federal government came to the close of its arguments, he said i read all your briefin and i see no case anywhere that strongly supports asking knee what to do to back what the epa isone. esn't tetell us for sure how he will vote but seems to suggest he has doubt this is time around. lou? lou: shannon bream. "the washington post" fact checker today hitti president obama with four pinnochios, the maximum, for his claim that almost 7 million americans enrolled in medicaid because of obamacare.

the administration it seems persistently, routinely misrepresentin facts without change. whether it be the president or s national security advisor susan rice, who returned to the sundayalk circuit, at least one show, to defend her involvement in informi the american people about benghazi. here is re's response when asked ifheas anyegrets. >> no. because, what said to you that morning and what i did in, every day since was to share the best information that we had at the time. the information i provided which i explained to you was what when he had at the moment. it could change. i commented that this was bed on whate knew on that morning. lou: we're coming right back. stay with us. standing up for the first amendment. fcc commissioner ajit pay. stopped fcc effort to police

newsrooms. he stopped the effort cold. he is our special guest

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lou: a triple-digit rally on wall street. the dow up 104 points, the s&p up 11, the nasdaq gained 29 points. crude oil up 62 cents, just under $103 a bill. gold rose $14 to 1338 an ounce. the yield on the 10-year up to 2.75%. the 10-year remaining stable. netflix agreeing to pay comcast for faster internet streaming speeds. mark zuckerberg announcing facebook will partners with wireless carriers on freebase i can mobile phone access for developing nations, with the goal of eventually reaching the entire world. and ford switching to

blackberry software forts in-car mobile systems. the automaker which dropped microsoft joins acura, audi and portia using blackberry. -- porsche. listen to my financial reports three times a day on the salem radio network coast to coast for all the day's market and business news. >> federal communications commission suspended its controversial, so-called, study of newsrooms and in an effort to develop quote, an understanding of quote, perceived station bias. my next guest is one of the staunchest criti of that proposal who says the suspension is an important victory for the first amendment and he is the man largely responsible for bringing this to the public's tanks. he is fcc commissner ajit pai. good to have you with us, commissioner. >> good to be with you, lou lou: i want to compliment you, congratulate you and thank you for bringing this to the public's attention because this

is suchn outrageous intrusion on the first, you know, in newsrooms and on the first amendment. imagine, it is just iredible to me that the fcc would even think to under steak - undertake a so-called study the way the news is both developed and covered and the decision-making process therein. >> and that is partf the concern i had when i looked into how this study was being designed. that the notion that the government could figure out for the american public what their critical information needs were, then go to nsrooms across the country and ask basic intrusive questions ho do you gather the news what is your news philosophy and does your station have a bias? those are not questions that belong in any newsroom certainly imsed by a government researcher. lou: the idea of those questions being posed, it is not of course, unfammliar to journalists to be asked those questions by scholars studying

journalism, studying the news business and trying to understand it better but to have a governmentgency, in particular the fcc, just simply trample the first amendment by becoming involved in a nsroom , it's stunning, even by this administration's standards, if i may put it that way. >> and i think it is troubling to a lot of people, not only because the government would be intruding into the newsroom but also because as you know, a lot of stations across the country ld license that is are gnted by the fcc they may not view a lot of these questions as entirely voluntary. they might fel comlled to respond and that is not somethg i think we want to have in a country that cherishes the first amendment. lou: what has been the reaction since you wrote your op-ed in the journal? >> one of the most heartening things about the dialogue by the february 10th op-ed in "the wall street journal" people from across the country and frankly across the idealogical spectrum have come together and said, we don't think this is

good idea. everyone from lanny davis, former counselo president clinton on the left and people on the right said we don't want the government in the newsroom. that is something i find heartening that people can unite in the principle that newsrooms should be able to decide for themselves what information the american peoe want and the american pple in turn can decide to change the channel if they want to, if they're not getting news they like. lou: the, so-called, study, of newsrooms, and, the news decision-making process, would be led by two, two organizations, university of, southern california, and the university of wisconsin at madiso working in league with the agency. your reaction to that combination? >> and i think that is one of the concerns that people have expressed he process by which the study was created and the study implementation would be done. unfortunately under the agency's rules the commissioners don't

t to ve on these proposals or structure of thos proposals. for example, i didn't have any inpuhow the study was designed and who would be doing it. that is one of the questions people have moving forward. lou: one of the questions would be, who runs the commission, if not the commissioners? >> so traditionally the chairman's office decides on proposals like this, entering into contracts and deciding studies. as a general matter it would be good for all the commissioners to have a say on these issues in part because it makes all of us accountable. all of us were appointed by president after all. secondly could help forestall some of these controversies rising in the future. lou: it certainly is a controversy and it is not going to go away because the study has been suspended, that very much sound like an effort on the part of the fcc and the chairman's office, to sply wait until the temperature outside goes down a bit before going ahead an carrying out exactly what they intended. >> so ooe of the things the fcc announced on friday neither this

study nor any future study would involve or require media owners, news direct oars or journalists to answer some of these intrusive questions. again one of the tngs i pointed out the study has been suspend. just as a baseball game is suspended ist canceled, we need to make sure the study, if there is going to be one, doesn'tntrude uponhe core constitional freedoms. i can tell you i and other americans will remain vigilant to make sure that is the case. lou: we appreciate it, commissioner, your time and vigilance. thank you so much. >> thanks again for havin me. lou: "the lego movie" ruling the box office ahird straight weekend. the warner brothers animated movie earned 31 1/2 million. bringing the domestic total to more than 108 million. not bad, relativity media, three days to kill, debuted at little over 12 million. sony's "pompeii" took over $10 million. russia shows it has sense of

humor during the closing ceremony. performers created that dio opening ceremony gaffehich one of the olympic rings failed to open and leaving four rings and a snowflake. the united states, by the way we came in fourth in the gold medal count. second overall. we would have been second in gold if snowboarder vic wwld, two-time gold medalist switched allegiances to russia back in 2011. he blamed the switch on lack of financial support for snowboarng in the united states. one think that is might be fix in the, for the next games. you know, i guess we're the ones who need a sense of humor,ot the russians. good for them and congratulations. up next,hs secretary kathleen sebelius claims obamace won't kill jobs despite a new report that shows she is killing them herself [poof!]

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lou: the obama administration caught in another obamacare lie, misrepresentation, inadvertent, well, whatever. this time it involves health and

human services secretary kathleen sebelius herself and her claims that the notion that obamacare will cost jobs is nothing but a, popular myth. fox news chief national correspondent jim angle find that is f from the case ad sebelius herself responsible. >> reporter: hhs secretary kathleen sebelius may have her own moment similar to president's obama's promise that everyone can keep their plan and "dr. no" matter what, after making this statement. >> there is absol evidce and every economist will tell you this, there is a any job loss related to the affordable care act. >> reporter: nevertheless secretary sebelius using digs correction granted by affordable care act, cut the maximum allowed by law from home health care fund, cuts officials said will be negative impact. we estimate, quote, 40% of the providers will have negative margins and company that is have negative margins don't last long or have to cut workers.

>> aone who has a brain in their skull knows that they're going to have to cu jobs and reduce services in order to make up the money. >> reporter: in fact those cs put in jeopardy 498,000 jobs of home health care workers, who work just for that 40% of firms that will go under into the red because of federal cuts, the kind of home health care workers who allah white mann, 98 to avoid hospit or nursing home stays by getting care at home. janet connor is her daughter. >> if she fell like she has a few times, typically you go to the e.r. but because we can call a nurse to come, then they can do the wound care here. >> reporter: her mother also got pneumonia was treated at home but janet couldn't care for her alone. >> i couldn't have done without help but it was over in a week but she was well. >> reporter: d david fisher, does what he did decades ago he makes house calls on elderly

patients who get sick. he relies on home health care workers when someone needs to be seen acting as his frst line of defense. >> often they alert me to a problem happening withthe tient. they really help me carry out the plan of care that i have for the patient to help them stay at home. >> reporter: the tecology association today says that the medical device tax has eliminated 14,000 workers and prompted employers no to hire another 19,000, throw in suppliers they argue the total jobs lost or foregone are 165,000. lou? lou: wow. jim thanks. jim angle. if you're burning with curiosity about the 2016 race for the white house, we have unupdate for you on the candidate luminaries, potential cndidates themselves. >> honest answer, i don't know. >> i'm looking at that. >> what the other candidates may or may not do is their choice. >> i haven't spent one second think about any job other than one i was hired to do.

people running for president isg an option for me in the future. lou: stay with us. we're coming right back. confidence lost. first time majority of americans say the president has lost the respect of his foreign counterparts. our a-team tonight, kennedy, joe trippi, jedediah bila. s next. in t new new york, we don't back down. we only know one direction: up so we're up earl up late. thinking up game-changing ideas, like this: dozens of tax free zones across new york state. move here. expand here. or sta a new business here... and pay no taxes for 10 years. with new jobs, new opportunities and a new tax free plan. there's only one way for your business to go. up. find out if your business can qualy at start-upny.com they're about 10 times softer

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lo let's start with, if i may, the president, 53% of those survey by gallup say,oe he is not very popular and they don't think he has same respect as or the world leaders what do you think? >> the numbers are going down for a while but nowhere near the record george bush set in 2007. in 2007, 21% of the americans thought he had respect of world leaders. esident obama is doing almost

twice as good. although those numbers have been falling. >> could ask i iyou bring up bush, could i ask you maybe about bill clinton? could you ask you about ronald reagan some other folks? let's get a larger metric in comparison. >>o, those are fair points and by the way, bush. lou: thank you. >> bush and republicans didn't do very well in 2008. and, the president's low approval numbersnd tese kind of, these kind of sour numbers from about the president world leaders will affect democrats in 2014 clearly. it is not a good sign. but it is nowhere near as bad as people make it out to be sometimes. lou: i haven't characterized it at all, jedediah? have you? >> i will now. lou: all right. >> barack obama started out really strong in 2009 which is interesting on thess issues. he was in the high 60s. i think that is really what is important. people are waking up starting to see this is all rhetoric. he made all sorts of promises.

rhetoric and intellectual talk and sitting down willing to negotiate doesn't necessarily lend itself to strong leadership and doesn't necessarily people bring people to the table that will bend on issues. tough gn respect from people andhat usually comes fro strength. lou: kennedy. >> hi, lou. lou: your thoughts? >> i think that combined with the gates 'book and domestic failures i don't rlly care how other people see the president in other parts of the wld. that is not what concerns me. what concerns me that he leads effectively. that to me as minimally as possible and he is not doing that. too much government. people are sick of it, not just in t united states but a virus obviously spread, this guy in 2008 ran on the idea that he was going to change the perception of united states single-handedly and lift us up out of the ghetto of, mall content throughout the world. >> i think he changedded perception. the perception is we're a lot weaker than people thought we were and more of a pushover an

theme what he thought we would be. lou: that may be fair indeed. even though bush may not have been liked he was very clearly a man to be reckoned with. that worked forim and against him as well. >> by the way saying he is not horrible isn't saying the same thing he is doing well. lou: yeah. >> in iraq and afghanistan keeping his word with the american peopl getting us out of those two wars 78 americans now believe were mistakes from the get-go. we can debate that at later time. the president is doing very effective job. >> that is 2014. he wasalking about getting out there have in 2008. lou: playing under critical those critical of the president and those supportive of the president anplay hail not chief when i'm speaking at all times. four pinnochiis, joe. >> i would vote for you by the way because you're independent. lou: very kind of you. i think that is kind.

>> high praise. i said i would vote for lou. lou: you what. >> i said i would vote for you. we can't get to you run. >> that make as conservative, liberal, independent. i think you need to run. that is the verdict here. you brought the country together in this room, lou. lou: and it is free. great beginning if i say so myself b you have to say things like that a lot ifou're running. i am impressed. the idea that "the washington post," joe, gave the president four pinnochios again for his claim, he moved away from the 10 million claim. now he is down to sev million with access to medicaid because of obamacare. at some point is there any level of embarassment about getting four pinnochios from "the washington post"? do they need to change the pinnochio thing? do they need to get a little re dramatic and powerful in their imagery? >> i think so because this is the same "washington post" that fav the republicans three piochios forlaiming that the cbo report, when they claimed

that the cbo report that obamacare would cost 2.5 million jobs. they have, give it four to the president, three to the gop. all on obamacare numbers. so who is telling, what numbers are real and i think you're right. four pinnochio three, four, pinnochios they have to figure something else out. lou: i mean "the washington post" brings down richard milhous nixon and gives obama four pinnochios. doesn't have the same -- >> goes to sw they're all liars. lou: all of them? >> yeah, pretty much. lou: everyone of them? >> sebelius in particular i would stress. lou: is that in particular thing that we go to. ukraine, i want to turn if i may quickly to the ukraine. >> i say ukraine, people always give me a hard time, you're supposed to say ukraine. you drop the. grandfathered in. i will say the ukraine out of respect. >> rolls off the tongue for some reason. it does. >> sound regal.

>> the fact of the matter that the ukraine tonight as an interim government and as gin jack keane earlier on this broadcast pointed out and previous parliament voted itself out and voted in a new parliament that voted in the president yanukovych out. where do we go from here, jedediah? >> i don't know. i'm curious to v. what barack obama does next. if he will take a leadership position f putin is the one to take i leadership position. whether we'll be sending eight. i don't really know. i expect barack obama take a back seat as he usually does and wait see what everyone else does and make a statement that sound reallyonderful he wants a call for peace which we all do. i don't know that he wants to play a key role in he region in terms of how things unfold next month or so. >> i think it is scary. putin is in very precarious position. he placed himself there. he has false confidence coming off the olympics.

that is a real element in thiss3 game. he is not going to recognize this government and who knows if he will try to get the band back together. and by the way the united states doesn't have to separate in here. believe or not, we can actually let them resolve this on their own regionally. >> amen. amen. it is not, look, the fact of the matter is, that putin ca overplay hisand. a lot of this started because the you klainian government started moving away from the eu and towards russia and the people of the ukraine rose up and there are other issues obviously. but i think. lou: tremendous issues. >> it's a big mistake for putin to overplay his hand and think, this will be, they're going to be elections held and till will be the people of the ukraine from the bottom up that decide the future of that country. they're the only one that is can do that. lou: you talk about putin overplaying his hand. yet, he has all of the advantages. he has a military at the

boarder. he has control of the eastern ukraine including the cry me yawn peninsula. he also has all of the natural gas that is so, so lusted after by not only the ukraine by europe. it is going to be more difficult for him to overplay his hand rtainly than president obama who has already, well, he has done everything but saying he is are has drown another red line. >> we would like to think that putin is drunk on international diplomacy because of the olympics but, i don't think that is the case. i think that he can be dangerous and slippery. i thinn you're right. i think natural resources are even greater threat, a greater quiver, arrow in his quiver than geography. >> i think consistency is key. whatever barack obama decides to do. i think he needs to be consistent from day one throughout. don't give mixed messaging on this issue. that is ermous problem in other areas, and stick to whatever it is you want to follow through with and stand

for what we stand for in the process and that is freedom. lou: jedediah, thanks very much. kennedy, have a great joe. joe, thanks for being with us. you have a great show tonight, lou. >> thanks, lou. lou: joe trippi. "new york times" idea political humor. what backlash against this cartoon. they publishedhis cartoon yesterday in which they suggest new yorkers deal with this icicle surplusy using them to stab global warming deniers. cute, huh? al gore, taking things to new extremes, imagine that. warning that if we don't act to fight global warming, the dust bowl will be coming right back to kansas. up next, president oba pushing a minimum wage increase despite the cbo report saying that it could eliminate up to half a million jobs. economist thur laffer is our best here next.

lou: chairman of the house ways and means committee, congressman da cam threatened to spoena the internal revenue service for emails from low which is learner, the official ahead of the agency's conservative group targeting scandal. he has requested learner's e-mails from 2009 onward. louisiana governor bobby jindal slamming t presidenn's plan to raise the minimum wage after the president met with the national governor's association earlier today. >> what i worry aut is that this president, the white house seems to be wavinghe wte flag of surrender after five, more than five years under this administration, the obama economy is now the minimum wage economy. i think we can do better than that i think america c do better than that. lou: joining us now, arthur laffer, former member of president are ron ron's advisory board -- ronald reagan. great to have you here. is the president waving the

white flag of surrender on the economy, job creation? >> oh, i think so but first have to tell you i love that name jedediah. just a great name. just tripis off the tongue. i'm sorry. lou: -- deal at least. >> of course i could have. never enough time. but bobby jindal is correct. i mean the minimum wage is a loser from the very beginning. the president says there is no tax impact on it. of course there is a tax impact. what everyone fails to realize is that all those minimum wage earners who get higher wages, someone has o p for those higher wages and these are marginal companies that are struggling to survive, are going to pay above the minimum wage. they will substitute capital for these people. and it will drive them out, as i said, this bills the minimum wage bill is deadly on inner-city youth. deadly on the poor, the

minorities, disenfranchised, people that need these jobs. lou: inner city, minority youth. we're talking aout just 25% unemployment rate for young males. >> worse. lou: by the w that is jst about what it was in 1965. we've got to get serious about solving problems. i mean there is this attitude on the part of the liberals, art, that it is, you know, it's a patronizing nonsense. terrible. lou: these folks are collateral damage to liberal policies and so we have the rightntentions so we can say, the hello wwth them. >> yeah. lou: that is such a, to me, somebody has to call them on that. >> but the unemployment rate is not the key here, lou. lou: it is one of the keys. >> yes it is but the other key is the participation rate is so low that employment as a share of the population in t inner-cities is as low as it h ever been. these kids are lost forever. once being unemployed couple years they become unemployable. after being unemployed couple

years, they become hostile and yo will have to spend a fortune to protect selfs from them. we have created underclass here. it is tragic what is going on. it is pure hypocrisy. lou: when we b clear here, when he we say, here, everybody. >> obama administration economy. >> businesses worked likeethe dickens since 1965 to incorporate hardcore, what we then referred to hardcore unemployed youth into a training system. we have, we have seen this government and so man of these liberal programs just blowing up. we've got to do better, have new thinking and frankly -- >> of course we do. lou: fresh blood in congress and in the white house who will have an original idea from time to time. >> wait a second. you're talking to a 73-year-old who used to work with reagan. fresh blood. maybe good old timing blood would do? my god, if i know you were that old, what are we doing here. you could have been my k

brother, lou. seriously there is no alternative for economic growth. this minimum wage is another surreptitious way of -- lou: denned did i, for crying out loud was rising tides lifting all boats. would you thin that would get through to the left! >> no, it doesn't. these guys are really deaf to those sound. you know they will go out like the dinosaurs. and once they're gone in 2014, lou, i think the we can really get some big changes. i know lots of democrats in the house a senate who would love to do pro-growth agendas. they would like to get the corporate tax rate way, way down and broaden the tax base and -- lou: we've just received word that john boehner and president are meeting tomorrow at 11:00 a.m. do you suppose they are going to talk about pro-growth agendas? are you exciteed? >> i am excited. i think boehner has done a pretty good job. frankly we've given the mocrats no weaponses to come after us in 2014. they can't yell about the debt ceiling. can'yell about this, that or the other. they have to take obamacare and

own it. and that is a loser. lou: arthur laffer. a winner. we thank you for being with us. >> thank you, lou. you're great by the way. i enjoy your show very much. lou: well, thank you, sir. you're invited back whenever you want. >> i will take it up. lou: up next, president oma's i've got a pen and a phone deal sparking a lot of outrage among our viewers. we'll share some of the best reactions to that. oh, man. all of that brought to you by this presideet. stay with us. wee coming right back. i bought a car, comes over... and you're like. if you're getting... a good deal or not. led up... truecar.com. althe information... you should be paying.

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with new jobs, new opportunities and a new tafree plan. there's only one way for your business to go. up. find out if your business can qualify at start-upny.com have a great night neil: this just in, obamacare down not out. that is not democrats saying that. that is republicans saying that. welcome, everybody, i'm neil cavuto. tea partiers had a feeling about ththis, didn't they? something didn't smell right to them when mainstream republicans said quit fighting keep your es on the prize. that prize was the midterm elections this fall, taking the senate and maybe, settings up taking the white house two years later. so avoid any distractions like shutting down the government and listen up. keep the foc on the well-tested issue of obamacare, how bad it is how unpopular it is and how important killingt